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Fixer Uppers Are on the Rise

Monday, March 13, 2017   /   by Angela Hunter

Fixer Uppers Are on the Rise

For first-time home buyers who pinched to save a down payment, the last thing on their mind is taking on a rehab project. But since entry-level homes are scarce, buyers who are desperate to get their hands on something move-in ready might end up paying a lot more for a starter than they anticipated. Or, they might be open to seeing a less-than-perfect home as a Diamond in the Rough. 

Research shows an increase in the number of homes for sale that are being listed as fixer-uppers or needing work. In the 50 largest markets, the number of homes listed for sale overall dropped 10 percent between 2011 and 2015. But during the same time frame, the number of fixer-upper listings grew by 10 percent.

For buyers, an open mind can mean an open door

A buyer who is willing to take on a fixer-upper might get a home in a upscale neighborhood than they originally thought possible. Nationwide, homes needing some work list for just 8 percent below market value, which translates to about $11,000 in savings on a median fixer-upper that a buyer can divert to renovations. 

Another benefit to your buyers considering a TLC-challenged home is that the required renovations can be made according to their personal taste. But it’s also a good idea to keep in mind which renovations tend to have higher resale values. Even though your buyers probably aren’t thinking years ahead to when they might be selling, you can help them prioritize their renovations. If they’re considering an upscale bathroom redo, suggest they consider a midrange window replacement instead, which can generate a higher ROI when they resell.

Homes across the country are still in demand, selling fast and going for higher prices. More sellers are taking the opportunity to list their homes “as-is,” presenting buyers with the chance to get a home when they might otherwise have been edged out. The combination of still-low interest rates, sluggish new construction growth and aging stock of for-sale homes most likely means that the number of available fixer-uppers will also continue to increase.

Keller Williams North Atlanta
Sells Strong Team
706 Poplar Way
Canton, GA 30115

Last updated April 21, 2024
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